Personal Finance

Barry McCall gives us some tips on writing a will and why a Christmas loan from St. Patrick's Credit Union might make sense over the holidays.

Where there's a will

Making a will is one of the simplest and most important things that any adult can do, yet it is surprising just how many people don't have one. For many people, the reasons for not having made a will boils down to a slight queasiness in relation to being reminded of their own mortality and a failure to understand the ramifications of not having one.

Of course, none of us like to be reminded that we are going to die sometime, but we have to put this aside and focus our thoughts on those family and friends that could suffer if we do not leave them properly provided for. In looking at the importance of making a will, the first thing to do is look at what could happen if we haven't made one. A person who dies without a will is said to have died 'intestate.' If you die intestate, this means your estate, or everything that you own, is distributed in accordance with the law by an administrator.

The administrator is appointed by the High Court and can be a family member or a total stranger. This is, in itself, a costly process which will be charged to your estate and it also delays the process of distributing it to your loved ones.

There is also the problem that the law is a rather crude instrument in such cases. If you are married with no children, your spouse will receive everything, regardless of the fact that you may have been separated and in a new relationship, or that you may have wished to leave a portion of your estate to another relative or loved one.

Similarly, if you are married with children, your spouse gets two thirds of the estate with the remainder divided among the children. This may not be what you intended, particularly if your children are already well provided for.

Further problems arise is you are widowed or single with no children. Relatives you have never heard of may come forward claiming a share of your estate while people that you actually wanted to leave something to would have no rights whatsoever. And if you have no living relatives your estate will go to the State. This is a particularly important consideration for people in relationships who are not married.

Making a will therefore allows you to decide exactly how you want your estate divided up and who you want to provide for. Furthermore, it allows you to make provision for vitally important matters, such as who should care for your children in the event of the death of both parents.

There are various methods of making a will, including websites such as www.wills.ie. But probably the best thing to do is to go to a solicitor. A solicitor will be able to advise you of all of the legal ins and outs and ensure that the will is properly made. A will that is not properly made and witnessed is open to challenge in the courts and if successfully challenged, is set aside and the situation becomes the same as if you had not made a will at all.

However, before going to a solicitor, you should take time to consider what it is you want to do - the people you want to leave your estate to, any special items such as jewellery or a car that you want to leave to specific person, who you might want to appoint as an executor and so on. Life

Appointing an executor is very important. An executor is legally bound to follow your wishes as laid out in your will. In the absence of an executor the courts will appoint one and the costs of this will be deducted from your estate. It is preferable that your executor be either a family member or someone known well to you who will have deep knowledge and understanding of your affairs and will be able to look after matters as quickly as possible.

If you have a family solicitor who you normally deal with, then go to them to make your will. If you do not there is no harm in looking up the Golden Pages and ringing a selection of them to find out how much they will charge. It should usually cost between €50 and €100 plus VAT at 21%.

Having made a will is not necessarily the end of the matter. People's circumstances may change; they may get divorced, become widowed or become rich. Any major change in circumstances should be a reason to at least review if not change your will to reflect it.

Very importantly, you should make sure that copies of your will are available to the executor and beneficiaries after your death. You can do this by asking your solicitor to keep a copy for you, by giving a copy to the executor or putting it in any safe place that your family or friends are aware of. Finally, there are various information resources available for people wishing to make a will. Well worth a look is "A Useful Guide to Making a Will," available from Age Action Ireland at 01 4756989. ESB staff can contact their EAP Officer for information or advice also.

St. Patricks Credit Union - Christmas Loan

If you are planning on doing your Christmas shopping in the next couple of weeks, then now is the time to get your loan from St. Patrick's Credit Union.

• Cheapest personal lending rate at just 6.5% p.a.
• You can top-up your current loan balance - no need to wait until your current loan is cleared.
• You can make lump sum payments without incurring any penalty.
• Flexible repayment terms.
• Fast and efficient application process.
• Free Loan Insurance Cover in the event of death.

Please also remember that if you do the shopping with your credit card, and are unable to clear the full balance when the payment date falls due, then get a loan from the Credit Union to clear it and avoid paying excessive interest.